Most readers know I’ve been holding 1000 shares of Micron (MU) for a while now. Since 11\/21\/17 to be exact. I bought in at $48.40. Today the stock is up and hit $45.20. Since I’ve owned the stock I’ve sold a few Calls bringing in some premiums. The premiums are not great but I was in the stock for the stock gain. I really thought it was heading to $60. It’s a great stock with very nice fundamentals and a high rating but it’s been very sluggish lately. There’s a lot of analysts who are surprised with it’s lack of movement, as I am. Today when the stock was at $45 I entered a “Sell to Open” order to sell 10 contracts of the $46 Calls expiring this Friday with a premium of 45\u00a2. When the stock hit $45.10 I was filled.<\/p>\n
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This is a Covered Call sold on previously owned stock but it gets a Risk Factor 2<\/strong>. I give it a 2 because my Strike price is $46 and I got in the stock at $48.40. If the stock gets to $46 and I get assigned I’ll take a loss on the stock sale. To tell you the truth, I really don’t care if I get assigned with the loss. I’ve been holding the stock for a while and I’d really like to put the money to work somewhere else. The stock has been moving the last week so I think there is a shot for the stock to hit $46. With the way my account has been moving, if it does, I’m OK. I’d take a $3000 loss but I’ve taken in about that much in premiums since I’ve started with MU. I’ll be OK moving on.<\/p>\n I received a 45\u00a2 premium on a $45 stock so this trade fits into my “1 Week\/1%<\/span><\/a>” strategy. Most readers know I love to take in a 1% premium for a 1 week trade. If you did that every week you’d have a great year. It won’t be a true 1 week\/1% for me because I’m in the stock at $48.40. If someone did this Covered Call starting today with a “Buy-Write<\/span><\/a>” it would be a true 1 week\/1% trade. I think it would be a nice trade.<\/p>\n <\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Most readers know I’ve been holding 1000 shares of Micron (MU) for a while now. Since 11\/21\/17 to be exact. I bought in at $48.40. Today the stock is up and hit $45.20. Since I’ve owned the stock I’ve sold a few Calls bringing in some premiums. The premiums are not great but I was […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-4029","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-12Z","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4029"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4029\/revisions"}],"predecessor-version":[{"id":4030,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4029\/revisions\/4030"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}